Next Generation Next Destination

SUCCESSION AND PARTNER TRANSITIONING PLANNING: A COMPELLING ISSUE FOR OUR TIMES

"Demographics are our destiny," reinvention is the new retirement," "win the talent wars" and be "the employer of choice."  Recognizing the challenges and opportunities, Practice Development Counsel's *Next Generation, Next Destination* program was developed by Phyllis Weiss Haserot and Richard T. McDermott in 2005 to achieve advance transitioning planning to benefit both senior partners and the professional growth of younger partners as well as their firms overall.

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GENERATIONAL LOOK AT THE CAREER NARRATIVE

Welcome to *Next Generation, Next Destination* Practice Development Counsel’s associate, Robin Ganek, who has provided this post from her Gen Y/Millennial view.

My organization said goodbye to around 15 administrative employees at the end of 2011 at a modest bon voyage ceremony with cake and a champagne toast.  The conference room buzzed with recounted memories and eagerness for sugar, until a tapped plastic cup hushed the room. The tribute was short but heartfelt, and it highlighted the contributions that this group had made throughout their time – an impressive average tenure of 20 years.  One had been with us for over 40 years, witnessing 8 different U.S. presidents in office throughout her career.

It was hard not to pause.  In just three months, I would celebrate my own milestone of four-years, the longest I have ever worked in one place.  Those four years went by quickly, but could I see spending another 16, or even 36?

It’s easy to see that the average time spent in a position is going down. Traditionalists and Baby Boomers may have expected to spend their career working at one organization, but Millennials like myself, and members of Generation X do not.  And while this dichotomy has some common and recognized consequences in the relationships between “resident” employees and more “transitive” ones, it also has ramifications for companies hoping to attract Generation Y into their ranks. One such ramification is a new emphasis on reputation.

One might expect that an employee who spends a relatively short period of time at an organization might not be as interested in that organization’s reputation, both as an employer and in their industry. Interestingly, we often see the opposite.  For Millenials, the mission, social responsibility, business standing and priorities - all elements of an organization’s reputation - are as important attributes of an employer.

The reason for this lies in storytelling. For Traditionalists or Baby Boomers who are defining their career and themselves in a single position, their work tells their story linearly, from their first project to their last, from their apprenticeship to their leadership. In 10 years, or 20, or 30 at an organization, your work literally speaks for itself—it defines who you are and what you do. For a member of Generation X or Y, the story contains flashbacks, jump cuts, side stories, and tangents.  Generations X and Y need to tell their own narrative, and that demands continuity from another source: a purpose, a goal.  The reputation of each organization on a Millennial’s resume speaks to this narrative.

When Millennials leave, they are not expecting a speech with a champagne toast and cake, but they are expecting to take with them the qualities that define that organization and to wear them proudly as they enter their next job.

 

 

 

"GENERATION START-UP” VENTURES FOR AMERICA

A brilliant way for a Gen Y to get good training in an interesting job and provide small businesses the talent they need (if only it weren’t for student debt).

SITUATION ANALYSIS

• Gen Y/Millennials need jobs and training
• A large number of Gen Yers want to start a business, but have little or no knowledge and experience regarding what is needed to build a successful business.
• Small (under 500 employees) businesses need eager, smart, flexible, people concerned more with learning hard-to-find skills in entrepreneurial environments than earning top dollar.
• Many desirable college grads have student debt, which colors their career and job choices.

Note: The Gen Yers typically have a different mindset and way of operating from the “freelance mentality” of the Gen Xers of the dot-com era.

Challenge: How to connect the dots to benefit the aspiring but untrained entrepreneur and the businesses needing the talent, especially in struggling cities.

To meet this challenge, Venture for America, inspired by Teach for America, was started by Andrew Tang, former CEO of Manhattan GMAT, the test prep company.  As reported in the Wall Street Journal, the first 50 “fellows” will be placed in small businesses (under 500 employees) this summer for a 2-year stint. Tang’s goal is to help early stage businesses and start-ups take off, and he is targeting to create 100,000 jobs by 2025. At the same time, the young fellows will get the know-how and experience to start companies of their own if that’s their goal. According to a recent survey by the Young Invincibles (a group focusing on young entrepreneurship) 54% of 18-34 year-olds in the U.S. want to start a business or already have done so.

The companies employing the Venture for America fellows will pay them $32,000 to $38,000 a year plus health benefits, and the participants will receive a 5-week program at Brown University similar to training that consultants and investment bankers receive.  The companies get bright, eager young workers they can afford to hire and mentor. This certainly would seem to fill the bill, especially for recent grads not burdened by family financial obligations or heavy student debt.  Even so, it seems a good investment in their chosen career direction.

Phyllis Weiss Haserot    www.pdcounsel.com

 

 

MANAGING EXPECTATIONS FOR GEN Y AND THE REST OF US

“How we manage expectations is critical to how we pursue our goals,” wrote Alina Tugend in her New York Times column Shortcuts (1/14/12) as she searches for guidance for managing expectations on health and all things in work and life large and small. In these times of a challenging job market and financial future, the psychology of expectations is a significant influence factor in degree of happiness and satisfaction.

Citing brain research, Tugend reports that “negative feelings are much stronger than the good feelings we get when expectations are exceeded.” Further, our brain sends out messages of danger or threat when we don’t meet our expectations.

Several studies about students have found that the best way to motivate them is to set high expectations and let students think they can stretch their capabilities to reach them, even if they have not been high achievers previously. We should want to maintain these high expectations of achievement in the work world.

Tugend concludes there is no “template” to manage expectations in all situations. “It seems as if it is best to have low expectations if things are out of our control, realistic expectations for things we can control to some degree and high expectations of ourselves,” she said. She favors Mary Grogan’s view on Mindfood.com: “It is having flexibility in our expectations and being willing to change track without self-blame that has been shown to increase well-being.”

So how do we translate this for new entries into the workplace and their managers, whichever side we are on?

• When setting high expectations, foster a culture absent fear that not achieving the expectations will result in significant punishment or perceived failure if uncontrollable factors come into play. Many Gen Y/Millennials have had (and still expect) help from parents, teachers, tutors, mentors and fear failure in their eyes, so they thrive better in a supportive culture.
• Be clear and repeat expectations so they are known and not misconstrued.
• Don’t habitually set expectations and goals artificially low in order to appear to over-deliver or your capabilities are apt to be questioned.
• Don’t over-promise to please in the immediate and set yourself up for failure ultimately, which will also hinder your team or project.

Managing expectations is a delicate balance and a considered calculation is needed for each situation.

Phyllis Weiss Haserot   www.pdcounsel.com

 

 

PROFESSIONAL EDUCATION TRANSFORMATION: VISIONARY AND TIED TO REALITY

Consultant Alan Weiss wrote in his Monday Morning memo (1/9/12): “In corporate strategy, we paint a picture of the future and then "work backwards" to determine how to organize to reach it…. Why don't we start with a picture of future, productive work forces (knowledge-based, technical skills, globalized, working remotely, diverse stimuli, automated routine chores, etc.) and create both professional and trade education that will support it? Our current cookie-cutter concepts of curricula don't work now and aren't preparing students for the future. Organizations don't reach strategic goals by using techniques that led to old goals. They develop new techniques, resources, and ideas.”

Weiss was referring to education institutions, but what he wrote applies equally to most of the training provided by employers, even leadership and management education. With constant change in the marketplace and a disconnect between the skills of people looking for jobs and the types of skills in short supply, it is necessary for both employer-provided education/professional development and high school, college, graduate school and trade school education to be tied to future vision and global competitiveness needs. We need new definitions of “competence.”

What is being done in your workplace and in your profession to tie training to a strategic vision that will provide growth fueled by a workforce prepared to meet what the marketplace needs now and in the future, not in the past? Is your succession planning truly future oriented to meet the needs of rising generations?

 

 

2012 MARKETPLACE IS PREDATORS' PARADISE: BTI'S ADVICE

I recently attended a webinar by The BTI Consulting Group, Inc. providing an overview of corporate counsel survey results and advice for law firms desiring to compete favorably in what was called a “predators’ paradise” in the marketplace for services. In my opinion, the advice is relevant beyond the legal arena to any professional service or actually any business with which needs a strong client focus. So I offer this brief recap of salient points to my readers.  (For more details, contact me at pwhaserot@pdcounsel.com.) It is important information for members of any generation aspiring to attract and retain clients in the “new normal” economy.

• High client satisfaction rates are crucial to defending against predator competition.
• The more fronts  (practice or service areas) on which you can penetrate and serve the client, the more likely you are to keep the business.
• You must be strongly aligned with clients” marketplace objectives, thinking like them. Situation specific approaches garner higher fees.
• Start with identifying marketplace needs and work backwards to determine and develop what you will offer, with flexibility. The aim is to provide individual clients with semi-customized services and delivery, that is, customizing for each from processes and templates in place.
• Rapid change in external factors means processes and approaches may have to change every 18 months.  Firms that are static in their mindsets and offerings will only get commodity work, which pays on the lower end.
• Focus is critical. Have 5 or fewer strategic objectives in a 12-month period.
• Actively and specifically respond and anticipate clients’ changing needs and priorities.
• What clients said was most difficult to find is “commitment to help them” rather than focus on the service provider’s needs.
• The second most important goal for clients is to have providers who give the best value for the dollar. So they are looking for more value for less cost.

BTI’S ADVICE ON HOW TO THRIVE IN A PREDATORS’ PARADISE. 

ON TO THE NEXT NEW THING

In an interview in Adam Bryant’s New York Times “Corner Office” column, Geoffrey Canada, CEO of Harlem Children Zone, gave his view that while many people in an organization are eager to try fresh new concepts and approaches, many of them forget to adhere to and reinforce ideas that already have proven to make the organization successful. He says to never forget the basics in order to stay great.

Yet we hear equally often that many people tend to resist new concepts and approaches.  Is eagerness to try new things and abandon the old to do something novel a generational trait or a matter of personal behavioral style?

Phyllis Weiss Haserot    www.pdcounsel.com

 

BOOMER LEGACY MEET GEN Y ENTREPRENEURISM

As professionals and executives become more senior, there is often a desire or expectation, self-generated or from others, that they will want to devote themselves to "good works" as a legacy. Leading edge Baby Boomers, tracing back to their formative years in the 1960s, started out as a generation to be socially conscious, involved and eager to make significant contributions for a better world. As they matured and became intensely immersed in their careers, often achieving substantial recognition and financial success, some are well on their way to fulfilling their "legacy bucket." Others have been too busy to think about it.

The philanthropic and pro bono world is watching. For example in the legal field, both the American Bar Association's Second Season of Service Initiative and some local entities such as the Association of the Bar of the City of New York have been eyeing and expecting senior lawyers nearing traditional retirement age to become a large talent pool for pro bono work.  The Great Recession’s effects may have changed or delayed that for a lot of them.

Pro bono, volunteering or unpaid work is not for everyone. In our *Next Generation, Next Destination* client interviews, we find that many Baby Boomer professionals want to continue to play in the business arena – with financial compensation. This was true before the recession, and is more so now.

So I had an interesting thought. The hedge fund managers and tech entrepreneurs under age 40 have started to think about philanthropy and how to use their money to do good. But many don't want to do it in the traditional ways. They are interested in starting their own entities with a different model which combines making money with doing good things for society. Perhaps some of those seasoned Baby Boomers can link their legacy time, expertise and desire to continue to contribute with the Generation X and Y entrepreneurs for some hybrid organization that takes advantage of the best each generation has to offer.

I, for one, would look forward to seeing how this can take shape. There certainly are limitless needs, causes and opportunities whether built on a not-for-profit or for-profit model.

I'd love to hear your ideas on this.

Phyllis Weiss Haserot    www.pdcounsel.com

 

 

A NEW CORPORATE TREND? TRANSITIONING CAREER FELLOWSHIPS

Marc Freedman, Founder and CEO, Civic Ventures / Encore Careers, announced that Encore Fellowships have been established as a retirement benefit by the first company to embrace the idea in a big way, Intel.

Encore Fellowships – paid, part-time, yearlong assignments at local nonprofits – provide a new source of experienced talent to organizations solving social problems, while offering those who have finished midlife careers the chance to transition to encore careers in the nonprofit sector. Intel has become the first company to offer Encore Fellowships to all of its retiring employees in the United States.

Intel retirees who become Encore Fellows will get a $25,000 stipend and six months of health insurance coverage, both paid by Intel. “Retirement benefits are no longer just about retiring,” said Freedman. “Instead retirement benefits can help cover the costs of transitioning to a new, encore stage of work for the greater good.”

Forbes columnist Kerry Hannon wrote, “The end of corporate retirement benefits is an old story. The rise of retirement benefits, well that’s worth some hoopla.”

Do you think we will see this idea blossom into a real trend?  Should people be seriously thinking about this when they hit 50 or 55?

Do you have a story to tell to www.encore.org?

Phyllis Weiss Haserot     www.pdcounsel.com 

 

BOOMERS PLAN ENCORE CAREER TRANSITIONS DESPITE TOUGH ECONOMY

According to a recent study, “Encore Career Choices: Purpose, Passion and a Paycheck in a Tough Economy,” Boomers have tempered their expectations, while at the same time retaining their unwillingness to give up on efforts to create a better world for succeeding generations. The survey was commissioned by Civic Ventures supported by the MetLife Foundation and conducted by Penn Schoen Berland. They surveyed Americans ages 44 to 70.

Here are a few key findings. To see more…

• The number of people in encore careers for the greater good is up, from 8.4 million in 2008 to 9 million in 2011.
• 40% of the 100 million Americans ages 44 to 70 are either in or interested in encore careers
• Half of the group surveyed says they are very concerned that the state of the economy makes this a difficult time to change careers. However, 25% of those interested in encore careers say they are likely to make the switch in the next 5 years.
• 73% of respondents are concerned that future generations of children will grow up to be worse off than people are now. And 70% say it is very important to them personally to leave the world a better place.

Do these findings resonate with you?

Would you be interested in joining a group to plan out your transition to your next career?

I can lead you to resources. 

Phyllis Weiss Haserot     www.pdcounsel.com

 

BROAD IMPACT OF STUDENT/EDUCATION DEBT

Not only is the amount of student debt staggering, but also it continues to grow significantly. Increasing 5% from 2009, students graduating in 2010 had an average of $25,250 in student loan debt, as has been reported widely.

As stated in the Y Pulse newsletter  (11/14/11), “Students have been raised to believe that having a college degree improves their chances of getting a job, but graduating in a poor economy, a degree doesn’t guarantee employment. They’re facing a catch-22. What’s more, when they have a hard time finding work, some are going back to graduate school, hoping that biding their time and improving their knowledge will result in a job. But meanwhile, they’re racking up more debt in school. In many cases, they’ll enter the ‘real world’ buried in debt. During the years they would normally be setting up their households right after graduation, they’ll instead be living at home trying to save money, shifting the typical consumer cycle by several years….”

Economists have been weighing in on how this affects the broader economy. And it brings many questions to my mind.

• Of course, there are some young graduates whose parents were able to pay the education bill and are not weighed down by debt. How are they affected by the debt albatross hanging on their classmates?

• How do you think the economics of firms would change if education debt/student debt were not a serious problem?

-       Would organizations be able to reduce entry-level salaries and compete on the basis of good and plentiful training offerings?

-       Would new employees be willing to trade higher salaries for more training and less oppressive work time pressures?

-       Would the U.S. be more competitive with other countries?

-       Would corporate social responsibility increase

• How much are Gen Y/Millennials’ decisions about career choice, amount of education and lifestyle (whether they can afford the one they choose or not) being affected by student debt?

Please think about these questions and comment on this important issue. It deserves a healthy dialogue.

Phyllis Weiss Haserot   www.pdcounsel.com